Source: My steel Oct 09, 2021
- ABSTRACT: During the Chinese National Day holiday (OCT 1TH – OCT 7 TH), the pace of steel trade in Asia has slowed down. The prices of raw materials, scrap steel, coal and other products continued to rise, which led to steel mills increasing their guide prices at the beginning of the holiday. However, market demand was weak and price increases were weak to follow up. At the end of the holiday, most varieties fell. The Chinese market is absent from the purchase of semi-finished products, and the quotations of billet supply in various regions have remained stable, but the transaction price has fallen. The European and American regions were affected by the work stoppage, and the demand for sheet materials decreased, and the price of hot coils experienced a correction for the first time.
【Raw materials/semi-finished products】
- On October 1, Daehan Steel, Dongguk Steel, and SeAHorse all increased domestic scrap prices by 10,000 krw/ton, On the 6th, South Korea’s Posco increased its scrap purchase prices due to reduced factory inventory and domestic finished steel prices. The purchase price of Gwangyang and Pohang plants increased by 10,000 won (approximately 8 usd/ton) per ton, and the price of pig iron rose to 562 usd/ton. Tokyo Steel subsequently increased its scrap purchase price by $10 to $18/ton. The latest transaction prices in Southeast Asia show that scrap import prices in Vietnam, Pakistan, Bangladesh, India and other places have increased by 5-10 usd/ton to $525 to $535/ton CFR per ton, and purchasing activities have increased.
- Although the local imported scrap price rose to about 10% $437/ton CFR (end of the month) in September, the mix resources of US imported resources exported to Turkey rose to $443 to $447/ton at the beginning of October. The import price of scrap steel rose again to $450 to $453/ton CFR, and importers’ inquiries on European resources also required steel prices to rise, and several transactions were completed on the basis of this price.
- Regarding billet, due to the absence of buying in the Chinese market, export transactions in India, Southeast Asia and the Commonwealth of Independent States remained calm. India’s domestic trade prices weakened by 500-600 rupees/ton, but the export quotations were basically stable, but the local import prices in Southeast Asia were due to the Philippines. , Bangladesh and other places weakened due to insufficient procurement activities. The CIF price on the 7th was 675-680 usd/ton CFR. Due to the weakening of the price of finished flat steel, the price of semi-finished slabs also followed the decline. The transaction price of slabs in East Asia fell to US$735-740/ton. The new orders of 20,000 tons of slabs from India SAIL showed that the price was lower than the price before the holiday 3 usd/ton.
【Long Steel Products】
- The prices of long products such as rebar and H-beam in East Asia have shown a downward trend during the Chinese holiday. The spot prices of local rebar and H-beam in South Korea have dropped by about 30,000 and 10,000 won, respectively. The export price of Japanese resources has dropped from before the holiday,around between 6usd/ton and 8usd/ton.At present, the price of H-beam in East Asia is between 955 usd/ton and 970 usd/ton. At the end of the festival, it may follow the sharp increase in China’s spot prices.
- Turkey’s rebar supply price rose by 5 to 8usd/ton at the beginning of the month due to the sharp increase in local scrap import prices. Marmara and Iskanbul spot rebar prices are between 667 and 670usd/ton. Taxes are not included between the rooms. Due to strong domestic trade demand, Turkish steel mills are less interested in export quotations.
- The Indian rebar, wire rod and section steel market saw weak buying during the Chinese holiday season. The high price of semi-finished products inhibited the purchase of finished steel products. The leading local steel mills continued to raise the guidance price of about 500 rubles due to the increase in the price of coking coal and coke. However, the mainstream rebar prices for intermediate frequency furnaces fluctuated between 49,000 and 51,000 rupees per ton, and the spot prices in various regions were mixed. The spot price of domestic trade in Bangladesh is between 71,000 and 73,000 kata/ton, which is stable during the holiday season.
【END】
During the holiday season, steel production in many regions of China is still affected by power restrictions. In the context of the sharp jump in the quotations of leading steel mills, the rebar in East China increased by 100-200 rmb/ton, and the supply of hot-rolled coils decreased. , The national growth rate is 30-100 rmb/ton, and the market transaction will gradually recover after October 4th. It is expected that steel prices in the Asian region will also have a rebound momentum under the conditions of a significant increase in the Chinese market after the holiday.
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Post time: Oct-09-2021